
capture log close
log using $log/EDS_17_overlap, text replace

clear
clear matrix
clear mata
set mem 2g
set matsize 800
set more off
set maxvar 20000
set trace off
set varabbrev off

		  #d;
		  global cov "  _Isu_schule_1 _Isu_schule_2 _Isu_schule_3 
	_Isu_ausbila1 _Isu_ausbila2
	_Isu_kat_al_2 _Isu_kat_al_3 _Isu_kat_al_4 
	_Ichild_1 _Ichild_2
	_Isu_eintri_1 _Isu_eintri_2 _Isu_eintri_3 _Isu_eintri_4 _Isu_eintri_5
	_Isu_eintri_6 _Isu_eintri_7 _Isu_eintri_8 _Isu_eintri_9 _Isu_eintri_10 _Isu_eintri_11
	_Ibefstat_1 _Ibefstat_2 _Ibefstat_3 _Ibefstat_4
	_Idauloint__8 _Idauloint__9 _Idauloint__10 _Idauloint__11 _Idauloint__12 
	_Idauloint__13 _Idauloint__14
	female east_germany
    german migration_background 
    married  
	benefit_status benefit_level log_benefit_level
    lifetime_ue_age lifetime_empl_age last_wage last_wage_mis 
    region_ba_aloq_zivall gdp_real_pc region_ba_vacancies 
	sector_manufacturing sector_service  log_mobirate_avg5
	openness_st conscient_st extraversion_st neuroticism_st loc_st
	write_ger speak_ger write_eng speak_eng
	homeowner
	     ";		
		
		 #d cr

		 use $data/data_pair,clear

	     encode region_pair, g(region_pair2)
		
		
		
		reg log_intensity_alt $cov i.region_pair2 [pw=1/fweight_reg] , cluster(region)
		predict int_res, xb
		
		gen intensity_high=0
		forvalues x=1/487 {
			qui sum log_intensity_alt if county_pair_`x'==1
			replace intensity_high=1 if log_intensity_alt>r(mean) & county_pair_`x'==1
			
		}
		
		
		
		#d;
		twoway (hist int_res if intensity_high==1, width(.25) fcolor(gs10) lcolor(none) fraction) 
		(hist int_res if intensity_high==0, width(.25) fcolor(none) lcolor(black) fraction), 
		scheme(s2mono) graphregion(color(white)) legend(off) 
		xtitle("Predicted log treatment intensity")
		;
		#d cr
		graph export $data/Figure_A4.png, as(png) replace
		

log close	

